Geometric mean wiley page 13

CFA Level I Quant
#1

Greetings,

I’m working through the 2024 CFA© Program Curriculum Level I Volume 1 Quantitative Methods, Economics (CFA Institute) and I wonder about this exercise on page 25. Where does the geometric year 1,2,3 data come from? I don’t understand how it is derived from the annual return shown in the above tabel. Like how do we go from -2,4 to 0,976? Please see attatched picture.

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#2

Country D, Year = 1 + (-0.024) = 0.976

The rest of the rates are left as an exercise for the interested reader.

#3

Ah ofc. Thanks so much.